Texas All-Lines Adjuster Practice Test

TX Adjuster Homeowners & Dwelling Coverage Practice Questions

Homeowners & Dwelling Coverage makes up 5 of every 50 questions on a Tigertest TX Adjuster practice test. Here are 10 of the 20 questions on it, each with the answer and the reason.

Updated 2026-11-10 by the Tigertest team. Based on the Pearson VUE Texas all-lines adjuster content outline effective September 2026. Original questions; 50 per test, weighted like the real 150-question exam. Not affiliated with TDI or Pearson VUE.

1. 1. A home with a replacement cost of $300,000 is insured for $210,000 under an HO-3. A kitchen fire causes $24,000 of damage at replacement cost, $18,000 at actual cash value. Ignoring the deductible, the insurer pays:

   • A.$16,800
   • B.$21,000
   • C.$18,000
   • D.$24,000

   Answer: B. The insured needed 80 percent of $300,000, or $240,000, and carried $210,000. The insurer pays the larger of actual cash value ($18,000) or $210,000 / $240,000 x $24,000 = $21,000.

2. 2. Under the ISO HO-3 replacement cost condition, for a larger dwelling loss the insurer pays no more than actual cash value until:

   • A.Appraisal has been demanded
   • B.The mortgage is paid in full
   • C.The insured signs a full release
   • D.The repair work is actually done

   Answer: D. Replacement cost on a larger loss is not owed until actual repair or replacement is complete. Until then the insurer pays actual cash value.

3. 3. An insured takes an actual cash value payment on a dwelling claim. Under the ISO HO-3, to keep the right to the replacement cost difference the insured must notify the insurer within:

   • A.180 days after the loss
   • B.One year after the loss
   • C.60 days after the loss
   • D.90 days after the loss

   Answer: A. The HO-3 lets the insured settle at actual cash value first and later claim the replacement cost difference, provided the insurer is told within 180 days after the date of loss.

4. 4. Which loss to the dwelling would an HO-3 cover but an HO-2 would not, absent other exclusions?

   • A.Weight of ice on the roof
   • B.Water from a burst heater tank
   • C.Paint a guest spills on carpet
   • D.Smoke from a kitchen fire

   Answer: C. The HO-2 covers the dwelling only for named perils, and accidental spills are not one of them. The HO-3 covers the dwelling on an open perils basis, so the spill is covered unless excluded.

5. 5. A renter insured under an HO-4 had built-in shelves installed in the apartment, and a fire destroys them. The shelves are covered under:

   • A.Coverage B, other structures
   • B.Coverage D, fair rental value
   • C.Additions and alterations
   • D.Coverage A, the dwelling

   Answer: C. The HO-4 has no Coverage A. Its additional coverage for building additions and alterations pays for improvements the tenant made at its own expense, up to 10 percent of Coverage C.

6. 6. A condo owner's kitchen cabinets, which the association bylaws make the owner's responsibility, are destroyed by fire. Under an HO-6 they fall under:

   • A.Coverage A
   • B.Coverage C
   • C.Coverage E
   • D.Coverage B

   Answer: A. Coverage A of the HO-6 covers the unit owner's share of the building, such as fixtures, cabinets and improvements that are part of the unit.

7. 7. Under the ISO homeowners forms, the insured must send a signed, sworn proof of loss within 60 days after:

   • A.The policy period ends
   • B.The date of the loss
   • C.The adjuster's inspection
   • D.The insurer requests it

   Answer: D. The HO duties after loss require a sworn proof of loss within 60 days after the insurer's request. Under the Standard Fire Policy the 60 days run from the loss itself.

8. 8. After a covered theft, an insured knowingly adds items to the claim that were never owned. Under the homeowners conditions, the insurer:

   • A.Must send the claim to appraisal
   • B.May deny coverage for the claim
   • C.Cuts only the added items
   • D.Charges the insured a surcharge

   Answer: B. The concealment or fraud condition removes coverage when an insured intentionally conceals or misrepresents a material fact or makes false statements about a loss.

9. 9. Under the ISO homeowners forms, the Ordinance or Law additional coverage lets the insured use up to what share of the Coverage A limit for code upgrades?

   • A.25 percent
   • B.10 percent
   • C.5 percent
   • D.20 percent

   Answer: B. The HO forms let the insured use up to 10 percent of the Coverage A limit for increased costs caused by enforcing an ordinance or law.

10. 10. A television costs $1,200 to replace new. It is 4 years into an expected life of 8 years. Its actual cash value is:

    • A.$300
    • B.$900
    • C.$1,200
    • D.$600

    Answer: D. Depreciation is 4 / 8, or 50 percent, so actual cash value is $1,200 - $600 = $600.